Why Is Shelter a Lagging Indicator of Inflation?

Economists know shelter is a lagging indicator of the Consumer Price Index or CPI, but why? CPI represents the cost of a basket of goods that includes shelter, but the two are not always closely linked. Research suggests that changes in shelter are often delayed compared to other parts of the index that are more immediate, like food and energy costs. Shelter lags due to low vacancy rates, insulated housing markets, and long-term rental contracts. What do you think? Share your thoughts and comments below, and don’t forget to join the discussion. ___ David Goldberg | VP of Mortgage Lending Certified Mortgage Advisor | NMLS #728872 2000 Auburn Drive, Suite 200 Beachwood, OH 44122 Office: 866-837-8677 | Cell: 216-496-9483 [email protected] www.GoldbergMortgage.com Schedule a time to talk: https://go.oncehub.com/DavidGoldberg #GoldbergMortgage #Mortgage #Homebuyer